Supply shortages continue to plague the industry

Kit.

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Probably true, but nonetheless Canon elected to surrender that manufacturing capacity rather than repurpose the plant or retrain the workforce. We don't know why that was the case, but ordinarily companies are loathe to get rid of a skilled workforce unless they are completely confident that they will never again need that workforce, because once you close a plant the workers walk out the door and you generally cannot get them back again.
Do you think that it is worth to keep a full factory of people on the payroll just for a chance that a couple of years later they might be re-trained to do something useful?
 
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AJ

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Sep 11, 2010
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There is apparently a shortage of passive components as well in electronics market:

Interesting. This reduction in capacitor production is blamed on factory shut-downs due to Covid.
Other reasons for the chip shortage I've read about is last year's drought in Taiwan, which severely limited production, the factory fire in Japan, and shipping hold-ups in China. It's the perfect storm. The other reason I've read about is that demand is up. With Covid, people are spending less on eating out and other experiences, and they are buying more stuff. Hence the inflation we're experiencing. The semiconductor industry didn't foresee this and went the other way.
As an aside, I'm peripherally involved in the outdoor recreation industry ( a side-hustle of mine), affording me a good view of what happened there. When Covid hit, the major retailers panicked, cancelled orders and actually demanded "containers at sea to turn around". What followed was strained relationships with manufacturers, some manufacturers going under or restructuring, and a reduction in production. Then, of course, the public got cabin-fever from being locked down and started heading outdoors in droves. Demand for outdoor gear spiked, resulting in huge shortages. New gear announcements were replaced by stock announcements. Supply hasn't caught up yet, and it will take some time.
I imagine the semiconductor story is similar. The difference being that to produce a chip with billions of circuits isn't as straightforward as sewing a parka or a tent. This will take time.
 
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koenkooi

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auto correct is a bugger at times .. but watch out for those chatty capacitors.. nothing you tell them remains a secret ;)
When I was studying EE, the uni decided to do everything in English instead of Dutch, the discreet/discrete mistake was made very often by everyone, including the professors. I still have to stop and think twice when using that word in writing :)
 
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SteveC

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When I was studying EE, the uni decided to do everything in English instead of Dutch, the discreet/discrete mistake was made very often by everyone, including the professors. I still have to stop and think twice when using that word in writing :)
I read an entire novel that used both words, often. And it got them wrong 100% of the time. The author, or his editor, had it backwards in his brain.
 
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Early on I believed that Canon and Sony would be better placed to weather the components crunch. Both those firms have their own foundries (Canon's refurbished line opening not coincidentally prior to the R5 launch). That was until I realized the shortage wasn't for primary chips, like the image sensor or CPU, but rather all the little components.

I think the factory fire from a couple years back may have actually helped our current situation, as it was forcing people pre-pandemic to look at alternate suppliers, and basic procurement strategies generally.
 
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Hector1970

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Supply Chain is an issue for almost all industry now. The Suez Canal blockage did alot of damage to the shipping industry . Containers and ships all ended up in the wrong place. The virus pushed up the demand for computers and other electronics. Pressure in the industry mean going into this Canon were cost cutting and keeping inventory to a minimum. Lean manufacturing is a great idea until there are shortages and then your production lines stop, restart and then stop again. With commmon parts everyone tries to snap up available stocks causing shortages all over the place. Companies end up with two much stock of one part and a short of another. It's not surprising Canon moved out of China. They will always be looking for cheaper location to produce and factories just get obsolete.
It will all probably eventually end up with over-production and overstocking. This is the nature of supply chain bull whip.
 
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David - Sydney

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One of the problems is that the hard to get parts are being ordered without regard to actual need. As they are relatively inexpensive, companies are ordering quantities in excess of what they need to make sure that component is on their shelf and won't be a shortage for them in the future.... human nature.
The demand is hence soaring past what the previous just-in-time quantities were.
 
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Joules

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As they are relatively inexpensive, companies are ordering quantities in excess of what they need to make sure that component is on their shelf and won't be a shortage for them in the future.... human nature.
Electronical components - the toilet paper of the manufacturing world :LOL:
 
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David - Sydney

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Electronical components - the toilet paper of the manufacturing world :LOL:
True, but I am referring to the "commoditised" components ie the ones that were cheap and plentiful in the past. There are very expensive components eg sensors that are managed very strategically as the cost/importance is high/high.
I will never understand why toilet paper is being hoarded. Makes no sense for a respiratory disease.
 
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